Merger and acquisition (M&A) deal value soared by 60 per cent to USD 19.6 billion in January-March 2024, while that of private equity (PE) experienced a slight dip, according to a PwC India report.

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With 455 deals amounting to USD 25.6 billion disclosed value, the first quarter of 2024 showcases a 24 per cent rise in deal volume compared to the fourth quarter of calendar year 2023 – marking a notable resurgence, as per PwC India report 'Deals at a glance'. "This signals a shift from the declining trend observed throughout 2023," it added.

As per the report, there were 143 domestic M&A deals, with the largest one touching USD 4.5 billion. The overall deal value for the first quarter of 2024 stands at USD 25.6 billion, a significant increase from the previous quarter and the corresponding period last year.

Sector-wise, traditional sectors took the lead, drawing significant investments in the changing deal-making scenario. The media and entertainment sector topped the charts in terms of value, while the retail and consumer sectors continue to lead in terms of deal volume.

Dinesh Arora, Partner & Leader – Deals, PwC India, said that amid a landscape ripe with opportunities, the Indian economy emerges as a beacon of resilience.

"The first quarter of 2024 showcases the best figures in the last six quarters, owing to the momentum of the market and large-ticket deals, hinting at a bold appetite for strategic expansion and market dominance.

"The quarter also heralds a promising horizon for capital markets and embodies an unyielding optimism. As dealmakers, businesses, and investors look towards the future, the energy is palpable," Arora said.

According to the report, in the first quarter of 2024, the market activity in terms of volume shows a significant uptick compared to the last two quarters.

In the first quarter of 2024, the market activity in terms of volume shows a significant rise compared to the last two quarters. M&A deals and PE investments rose by 23 per cent and 24 per cent, respectively.

"The total deal value exhibits a significant rise this quarter, led by M&A deals, where deal value soared from USD 12.2 billion in Q4 CY23 to USD 19.6 billion in Q1 CY24 – marking a 60 per cent increase," the report said.

Despite a slight dip in PE deal value from USD 7 billion to USD 6.1 billion in the first quarter, the total deal value for January-March 2024 stands at USD 25.6 billion – 33 per cent higher than the last quarter of 2023.

This quarter witnessed 14 deals with value over USD 500 million compared to just nine such deals in Q4 CY23, of which 12 are M&A transactions, the PwC India report said.

The average ticket size for M&A remained unchanged, while the same for PE investments saw a decline of 39 per cent, indicating that although the number of deals increased, the majority of these deals had smaller ticket sizes. Most deals with disclosed values were in the lower- and mid-market segment, with around 80 per cent of the total deals below USD 50 million.

Sectors like media and entertainment, power, pharmaceuticals, retail and consumer, and financial services saw high deal values, showcasing substantial investment in traditional sectors.

Moreover, the retail and consumer sectors continued to display a high deal volume, with 81 transactions in the first quarter, followed by the technology sector at 49 deals.

The largest deal of the quarter comes from the media and entertainment sector, where Reliance Industries signed a binding agreement with Disney to form a joint venture, combining the businesses of Viacom 18 and Star India. This is expected to create a media behemoth across TV broadcasting, streaming, movies and sports.